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TMI Blog2024 (8) TMI 1216X X X X Extracts X X X X X X X X Extracts X X X X ..... directed the Appellant to restore the possession of certain properties to the Respondent-M/S KRBL Ltd. A provisional attachment order 3rd July, 2019 was confirmed vide order dated 12th December 2019, under Section 5 of the PMLA Act. This order was impugned before the PMLA Appellate Tribunal which passed the impugned ad-interim order dated 17th January, 2020. 4. A brief background of the present case is that an Enforcement Case Information Report (hereinafter, 'ECIR') was registered against the Respondent and subsequently investigation was undertaken under the PMLA Act against M/s KRBL Limited. Thereafter, a provisional attachment order under Section 5 of the PMLA Act was passed on 3rd July, 2019. By the said provisional attachment order, the properties mentioned in paragraph 5.3 of the order dated 3rd July, 2019 equivalent to the value thereof, of the proceeds of crime, were attached. The details of the properties are as under:- "i) Property bearing Land at HB No. 66 Khasra No. 922 (1-3-0), 923 (1-8-5), 934 (0-8-0), 975(1-10-0), total area measuring 4 Bigha, 9 Biswa, 5 Biswansi at Village Bhasaur, Tehsil Dhuri, District Sangrur, Punjab. ii) Land at Khasra No. 454/642, 642/887, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the statements recorded u/s 50 of the PMLA, and on careful consideration of arguments advanced on behalf of the Complainant and Defendants the undersigned comes to the prima facie conclusion that the defendants have committed the Scheduled Offence, were associated with generation of proceeds of crime and laundered them. It is accordingly held that the properties under reference which have been attached under Section 5 is involved in Money Laundering. Prima facie case for confirmation of PAO is made. No doubt the properties attached are proceeds of crime or value thereof and are involved in money laundering. Undersigned therefore orders confirmation of the above Provisional Attachment Order. This order shall continue during the pendency of the proceedings relating to any offence under this Act before court or under the corresponding law of any other country, before the competent court of criminal jurisdiction outside India as the case may be become final after an order of confiscation is passed under sub-section (5) to sub-section (7) of Section 8 or section 58B or sub-section 2A or section 60. 29. The Provisional Attachment Order is confirmed and Complaint is allowed. Appel aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ants. Accordingly ordered." 7. The Department/Appellant impugns the order dated 17th January, 2020 before this Court. 8. During the pendency of the appeal, an application was preferred by the Respondents being CM APPL. 25639/2020. The prayer in the said application was that despite the order of the Tribunal, possession was not given to the Respondents. In the said application, the ld. Predecessor Bench vide order dated 23rd October, 2020, had directed as under:- "3. It is further submitted by Mr. Nayyar that the warehouses are already under attachment by this appellant, but the use of the warehouses may be permitted upon a condition that this applicant is ready and willing to deposit Rs. 11.13 crores (which is the value of the warehouses, as assessed by the appellant authorities) with this appellant, which will be without prejudice to the rights and contentions of this applicant in the present appeal, and the deposit of the aforesaid amount shall not be treated as admission of any facts on the part of the applicant and all the contentions raised by the applicant in the pending appeal shall be permitted to be raised. Thus, this applicant is ready to deposit the aforesaid amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... placed upon the observations of the Supreme Court in Vijay Madanlal Choudhary and Others vs. Union of India and Others, [(2022) SCC OnLine SC 929] which clearly provides in paragraphs 73 and 74 that the stipulation in sub-section (4) of Section 8 of the PMLA Act, which provides for taking possession of the property, ought to be used in exceptional situations and not as a rule. The Supreme Court has observed that merely because a provisional order of attachment under Section 5 (1) of the PMLA Act has been confirmed, it does not follow that the property stands confiscated. The relevant portion of the judgment is extracted hereinunder for a ready reference: "73. The other grievance of the petitioners is in reference to the stipulation in sub-section (4) of section 8 providing for taking possession of the property. This provision ought to be invoked only in exceptional situation keeping in mind the peculiar facts of the case. In that, merely because the provisional attachment order passed under section 5 (1) is confirmed, it does not follow that the property stands confiscated; and until an order of confiscation is formally passed, there is no reason to hasten the process of taking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perties is continuing and there was no compelling hurry for taking possession, that too in violation of the order dated 24th December, 2019 passed by the predecessor Bench of this Court in Writ Petition (Civil) 13793/2019 titled KRBL Limited vs. Directorate of Enforcement Through: its Standing Counsel. It is further submitted that the Appellant/Department is in clear violation of the aforementioned order which reads as under:- "As only a limited relief is sought, the present petition is being disposed of at this stage itself without calling upon formal reply from the respondent. The learned senior counsel for the petitioner submits that an order under Section 8(3) of the Prevention of Money Laundering Act, 2002 has been passed by the Adjudicating Authority on 12.12.2019. He submits that a copy thereof was received by the petitioner on 17.12.2019. Further, placing reliance on Section 8(4) of the Act read with Rule 5 (2) of the Prevention of Money-Laundering (Taking Possession of Attached or Frozen Properties Confirmed by the Adjudicating Authority) Rules, 2013, he submits that the Authorized officer has to issue a notice of eviction of 10 days before taking over the possession. He ..... X X X X Extracts X X X X X X X X Extracts X X X X
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